Auxilium Pharmaceuticals of Chesterbrook has announced it is reducing its financial guidance for 2014 due to lower-than-expected revenues from one of its products, Testim testosterone gel.
For the first quarter of 2014, the company expects to record worldwide Testim revenues of approximately $11 to 13 million, compared to $45.5 million in the first quarter of 2013. Full-year Testim sales for 2014 are now expected to be less than $85 million. Auxilium will announce its total definitive net revenue, including definitive net revenue for Testim, on its earnings call planned for May 5.
Auxilium attributes the disappointment to a shrinking testosterone replacement therapy gel market and lower Testim market share along with the U.S. Food and Drug Administration’s announcement that it plans to study the safety of testosterone replacement therapy (TRT) products.
Recent medical journal publications have suggested health risks associated with these products. As a result of this and announced litigation against companies marketing TRT products, Auxilium believes the prescription volume for the gel market could be down an overall 25 percent in 2014.
The company is being required to accrue a liability for the higher-than-expected rebates and allowances on all Testim units estimated to be in the wholesale and retail distribution channels.
Auxilium will hold a conference call at 8:30 a.m. Monday, May 5, to discuss first quarter 2014 results. The presentation slides to be used during the call will be available on the “Investors” section of Auxilium’s web site under the “Presentations” tab at 8:30 a.m. ET. A question and answer session will follow the presentation. The conference call will be archived for future review until Aug. 5.
Auxilium is a specialty biopharmaceutical company with a focus on developing and commercializing innovative products for specialist audiences. The firm is an emerging leader in men’s healthcare and has strategically expanded its product portfolio in orthopedics, dermatology and other therapeutic areas. Auxilium now has a broad portfolio of 12 approved products an also has programs in clinical development for the treatment of Frozen Shoulder syndrome and cellulite.
Links: www.auxilium.com
